I have criticized, and not infrequently, the advertising campaign with drums and saucers made by banks and the government, "dial" supporting SMEs in our Latin American countries. Given the need and passion for entrepreneurship, there is an urgent need to obtain resources to finance these ventures.
One good morning, after watching the news, the entrepreneur or the entrepreneur herself that the “Banco BBG” (Banco Buena Gente) is willing to finance an SME. Very early, he stood in line for just over an hour and a beautiful executive gave him a "small list" to give credit to his small new business.
Among the requirements are: having more than a year of operation, certified financial statements, a projected cash flow, having an impeccable credit record, commercial references, etc. Excellent. The bank is doing its job, that is its business: " make sure you allocate your resources effectively and profitably."
It is sad to read so many comments from entrepreneurs, that after hearing or reading that advertisement, they go to the banks or to one of those government offices to come up with a spectacular business idea that they have; but they need working capital, financing to buy inventories, machinery and equipment.
Perhaps they even ask you for a "real guarantee", that is, a mortgage as collateral for the loan. Ah… the owner's surety, of course and perhaps three more guarantors, all with fixed wages and with more than a year of working in the same company.
I know that there are banks and institutions that are offering what they advertise in the media and they are doing very well. If you work for one of them, write in this articles and send us the contact… Thank you !!!
Anyway, if you are that entrepreneur who visited that bank, that beautiful morning, you go out with your jaw glued to your chest, thinking: "What came first, the chicken or the egg?"
Look at this comment:
"Good evening, very enriching information and comments here. In fact, I think that in my case, many people have an entrepreneurial spirit and have fairly structured business initiatives with high potential to succeed, but when we want to make the leap, we run into a huge wall called financing. The entrepreneur is seen in most cases by the financial system as a high-risk resource and therefore it is difficult to access the economic resource options necessary to move forward. In my case I have a designed business plan and a feasibility study for the establishment of a business but I have had no luck with the financing issue ”
This other comment, from a few days ago, that one of you wrote (I reserve the name) forced me to write this little article that applies to small businesses:
“My business idea is to become independent, that is, I currently work with another person in the construction area… and in these years I have gained a lot of knowledge, for which reason I feel capable of following my own path. I also know that I would not lack work because I have become known in this area… I am from (I reserve the country) and I need financing for the purchase of electric tools and everything related to construction, so I could give work to more people than I they need.. but here the banks only help microentrepreneurs or entrepreneurs already trained.. that is why the people who want to start in business do not arise.. taking accounts I need between $ 1,500,000 and $ 2,000,000 to start. what would you advise me? Thanks for your time."
This is what I advised this friend and I think it would be useful for many of you too, who are starting a new business, have less than a year and are looking for financing:
Hello:
I am not sure how long you have working for that company. But I suggest you be very cautious when taking the step. It is very different to be an employee than to be the owner of your own business, even if you have the knowledge already proven.
Also, I understand that you have no tools or financing.
I suggest the following:
to. Keep learning more and more, invest in learning, in being a specialist in being the best. Give more and more in your current job. Customers of that company will see it.
b. Open a checking account and a savings account at the most recognized bank in the country.
c. Open a credit card and use it wisely, it has an excellent credit record. Do not fail. Buy everything you can with a card.
d. Go and buy a tool that you can pay for without a problem in three months: a good drill, a professional tool box. Whatever is on credit and pay on time. Make it a great, prestigious hardware store. Complies. That will be your first source of financing.
and. It would also be very valuable to start, if you have time to do some work, few but very specialized, on weekends. Please, never take time from your work for personal work. That is stealing.
Go ahead and tell me how it goes.
Living the lifestyle that allows you to own your own company is exciting. It opens you up to a world of opportunities.
Every day, more men and more women are making the decision to own their own company. You can be, too, but before you do, make sure that “spectacular business” idea has true business potential.
